KUALA LUMPUR: The maximum funding commitment for the development of the Eentier Perlis power plant to KAB Energy Holdings Sdn Bhd (KABEH), the wholly owned subsidiary of Kinergy Advancement Bhd (KAB), is RM479.4 million.
This being the 51 per cent of the total equity portion of the project of RM940 million, said KAB in a filing with Bursa Malaysia. The group is placing out 10 per cent of its shares to raise RM49.35 million to fund the equity portion.
The total project cost for the Phase 1 of the Perlis power plan stands at RM4.7 billion. External debt financing is planned to cover 80 per cent of the cost, while the remaining 20 per cent, or RM940 million, to be funded via capital injections from KABEH and B.Grimm Power.
The final equity structure will only be executed after the letter of notification (LoN) is issued by the Energy Commission (EC), said KAB in a filing with Bursa Malaysia today (Wednesday).
On Sept 25, KAB announced that it is proposing to place out up to 218.5 million new ordinary shares, representing 10 per cent of the total number of issued shares of the group, to raise RM79.75 million.
Malacca Securities Sdn Bhd is the principal adviser and placement agent for the exercise.
The company is undertaking the private placement in advance to ensure financial readiness within the six-month window following LoN issuance.
Besides the private placement proceeds of RM49.35 million, KABEH plans to fund its RM479.40 million obligation through internally generated funds and/or bank borrowings, supported by existing cash and bank balances of approximately RM155.8 million.
Development details and timeline for Eentier Perlis power plant
The proposed power plant is set to be developed on a brownfield site of a previous 650MW plant located in Simpang Empat, Perlis.
The former plant operated from 2003 until its retirement in March 2024 and has since been decommissioned, with demolition and site clearing works currently underway.
Existing infrastructure on site includes a 132/275 kilovolt (kV) switchyard, a gas metering station, and a 56 megalitres per day (MLD) water treatment plant, which may be utilised by project entity Eentier for the combined cycle gas turbine (CCGT) development.
The land is registered under Teknologi Tenaga Perlis Consortium Sdn Bhd (TTPC), which is 80 per cent owned by Jati Cakerawala Sdn Bhd, while Tenaga Nasional Bhd (TNB) owns the rest.
KABEH holds a 51 per cent equity interest in Jati, while the remaining 49 per cent is held by B.Grimm Power.
The initial LoN (iLoN) for the project was secured on Dec 2, 2025.
Discussions are currently ongoing with the EC regarding technical and commercial terms, as well as document exchanges.
Pending the conclusion of these talks, the LoN and power purchase agreement (PPA) for Phase 1 (750 MW) remain pending, with the LoN anticipated in the fourth quarter of 2026 or the first quarter of 2027.
To ensure project readiness, consortium partner B.Grimm Power has secured the required gas turbine via a reservation agreement, which will be novated to Eentier upon issuance of the LoN.
Contingency allocations and working capital
Should KABEH ultimately not be involved in the Eentier Perlis power plant project, any pre-development expenses incurred will be non-refundable, said KAB. In such a scenario, the proceeds allocated for the power plant will be redirected toward KABEH's ongoing renewable energy (RE) projects.
These include the Gerik and Slim River mini hydropower plants in Perak, with combined project value of RM147.66 million.
KAB manages 24 projects with a total contract and/or concession value of approximately RM1.35 billion.
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